STAND. COM. REP. NO. 634-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2164

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Labor, to which was referred H.B. No. 2164 entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

The purpose of this measure is to define compounded prescription drugs for the purposes of Worker's Compensation Law.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; Hawaii Insurers Council; Aloha Billing Company; Work Injury Medical Association of Hawaiʻi; Hawaii Injured Workers Association; Kathy Plack Medical Billing; Hawaii Injury Recovery Center, Inc.; Marshall H Orr Jr MS MPT LLC; Carol Ann Orr MD LLV; and three individuals. Your Committee received testimony in opposition to this measure from the Department of Human Resources Development; Solera Integrated Medical Solutions; and Premier Medical Group Hawaii. Your Committee received comments on this measure from Nubratori RX.

Your Committee finds that workers' compensation systems rely on clear standards to keep costs predictable for employers while ensuring injured workers receive appropriate and safe medical care. Your Committee further finds that compounded prescription drugs can be clinically necessary when FDA-approved medications are unsuitable, but inconsistent definitions at the state level have created confusion regarding their proper use and safety requirements. Your Committee believes that aligning state law with federal compounding standards will strengthen patient safety, improve regulatory consistency, and ensure injured workers have access to individualized medications when medically appropriate.

Your Committee has amended this measure by:

(1) Removing the reference to a licensed physician within the meaning of a "compounded prescription drug" in regards to whom may compound the drug product;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2164, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2164, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

JACKSON D. SAYAMA, Chair